[SMM Analysis] Weekly Dynamics of the Lithium Carbonate Market: Prices Continue to Decline, Tug-of-War Between Sellers and Buyers Intensifies

This week, the transaction price center of spot lithium carbonate continued to decline, with a drop of around 300 yuan/mt. Today, the SMM battery-grade lithium carbonate index price was 74,775 yuan/mt; battery-grade lithium carbonate was priced at 73,800-75,700 yuan/mt, with an average price of 74,750 yuan/mt; industrial-grade lithium carbonate was priced at 72,300-73,300 yuan/mt, with an average price of 72,800 yuan/mt.

Based on the current market transaction situation, downstream material plants generally showed relatively weak purchase willingness, with fewer inquiries and transactions compared to last week. Only some enterprises had just-in-time procurement restocking needs. On the upstream supply side, the continuous surplus of lithium carbonate dragged spot lithium carbonate prices downward, hindering production motivation for some lithium chemical plants. Weekly output has struggled to increase further but remains at a high level. Considering the performance of both sellers and buyers, the surplus pattern of lithium carbonate is difficult to reverse. Although upstream lithium chemical plants' strong sentiment to stand firm on quotes may provide some price support, the high inventory levels of traders could pull down the transaction price center of lithium carbonate. It is expected that spot lithium carbonate prices will still have some downside room, accompanied by sideways movement.